- Wealth manager AFH said Monday it had completed the acquisition of CTL Three Limited for up to £10m, expanding the company's presence in the North East.

Under the terms of the acquisition, the maximum purchase price was £10m dependent upon performance criteria of the business acquired. The initial payment was £4.2m.

As a result of the transaction Paul Hodgson, Paul Newman, Shane Beardsley and Victoria Hicks, together with 22 advisers and their support staff, would join AFH bringing over £530m of funds under management, the company said.

For the 12 month period ended 30 June 2018, CTL achieved revenues of £4.7m and profit before tax of £1.1m. On a post-acquisition pro-forma basis, the business would have generated an estimated profit before tax in excess of £1.4m during the period, AFH said.

'The acquisition of CTL is our third transaction of the year and significantly expands AFH's national footprint with over 240 advisers working across the UK and over £5bn of FUM. At the start of the 2017 financial year, the Board set itself three medium term financial aspirations: FUM of greater than £5bn, revenues of £75m per annum and underlying EBITDA margin of 20% on revenue. The acquisition of CTL takes our FUM to above £5bn and we remain confident of achieving the remaining targets,'' said Alan Hudson, Chief Executive of AFH.

At 8:28am: [LON:AFHP] AFH Financial Group Plc share price was +3p at 386p

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